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Insurance cost for condominiums is a major concern in current political campaigns

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Jillian Anderson had initially planned to prioritize tackling crime in Waikiki as her main campaign issue for a seat in Hawaii’s House of Representatives. However, a sudden 300% surge in insurance premiums announced by her condo association has shifted her focus. Facing around $2,000 in additional costs, Anderson now places addressing critical concerns like escalating insurance expenses for condo owners in Waikiki and across Hawaii at the forefront of her agenda.

The surge in insurance rates affecting condo dwellers has also prompted attention from other political candidates. Incumbent Rep. Adrian Tam, Anderson’s opponent in District 24, has highlighted the unstable condo insurance market as his primary concern, emphasizing the necessity to stabilize and even lower premiums. In neighboring House District 23, candidate Ian Ross echoes similar sentiments, noting that housing affordability discussions often revolve around insurance issues, particularly in condo-dense areas like Makiki, McCully, and Moiliili.

The escalating condo insurance rates stem from various factors, with master hurricane insurance policies for condo structures and common areas playing a central role. While Hawaii’s hurricane carriers remain in the market, challenges arise as some insurers may not offer complete coverage against hurricane losses. This situation forces many condo associations to seek secondary insurance at high rates, subsequently passing on the costs to owners.

Proposed solutions to address the condo insurance dilemma include calls for a special legislative session. However, challenges lie in organizing the session without specific bills to discuss. Lawmakers emphasize the need for concrete proposals before convening a special session to tackle the pressing insurance issue. Senator Sharon Moriwaki and other officials highlight the importance of finding solutions that do not drive insurance providers away.

Beyond insurance concerns, candidates like Kim Coco Iwamoto advocate for additional protections for condo owners. Proposed measures include empowering individual owners in disputes with property managers and association boards. While these proposals face opposition from industry stakeholders favoring minimal government intervention, advocates like Iwamoto push for housing security improvements amid the current system’s shortcomings.

The campaign trail is witnessing increased focus on issues impacting condo owners, reflecting a growing awareness and advocacy for change in the housing sector. Calls for a special session, support for legislative reforms, and emphasis on the need for concrete solutions illustrate the candidates’ commitment to addressing the challenges faced by condo communities in Hawaii.